Retirement Planning - Lessons Learned

[Torvy]

Since most realtors take a cut, they ought to be doing more than just staging. I never liked that model. Most, not all, do little to earn 6%+ of the value. The value of the house does not change their workload much if at all. I prefer the flat fee. There are some excellent realtors who earn it, but too many just look up a price , post it on MLS and wait.

 

[Jstpssng]

My sister listed a camp after she and her BF broke up, and it sold before she had a chance to get up there and clean it out. The realtor told her she couldn't take anything as the buyer wanted it as is. The place was torn down, and Heidi later found out that the realtor had cleaned it out herself and sold everything.

 

[newbury]

The place we bought in Ms. 10 years ago had been "staged" in reverse. It was wall to wall clothes in the house. The 5,000 sq foot of sheds,

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was wall to wall moderately decent miscellaneous junk and 1 shed had been a "party shed". But all buildings were in good physical shape, just needing some roof work.
And the price reflected the "hoarder" status. All other "comparable" properties were a LOT more, but they were cleaner.
The house was easy to clean out, the sheds took a while, but it was well worth it. We saved so much there was no need to sell our properties in northern Virginia.
If they had spent $5K cleaning it up they could have probably gotten $50K more.

 

[ultrarunner]

Contract language would be interesting...

I've sold with and without and also 50/50 where a broker brought me the buyer...

I've seen both brokered transaction and for sale by owner blow up...

The ones brokered had the job cleaning it up including legal fees and settlements...

For Sale by Owner can be a lonely place especially in a highly regulated market where tons of disclosures, etc are required. There are some sophisticated buyers just waiting for For Sale by Owner.

A good local expert Realtor just makes it look easy which is a good thing... so many pitfalls these days...

I'm not that old but can remember when my rental agreement was a single page plus inventory and condition sheet...

Now it is 28 pages most of which are mandatory disclosures covering everything from city smoking law to rent control, Meagan's Law, Lead and Asbestos... etc.

 

[Frankenkubota]

Contract language would be interesting...

I've sold with and without and also 50/50 where a broker brought me the buyer...

I've seen both brokered transaction and for sale by owner blow up...

The ones brokered had the job cleaning it up including legal fees and settlements...

For Sale by Owner can be a lonely place especially in a highly regulated market where tons of disclosures, etc are required. There are some sophisticated buyers just waiting for For Sale by Owner.

A good local expert Realtor just makes it look easy which is a good thing... so many pitfalls these days...

I'm not that old but can remember when my rental agreement was a single page plus inventory and condition sheet...

Now it is 28 pages most of which are mandatory disclosures covering everything from city smoking law to rent control, Meagan's Law, Lead and Asbestos... etc.

i've been thru 26 real estate closings as a private individual, some seller, some buyer, a few with realtors, most without.

In my case i would find a local real estate lawyer to "review" the transaction, keep their eyes on things.

Back east we are forced to use lawyers for real estate transactions, out west they have companies that do all the dirty paper work etc., called escrow companies .

I found that most folks on the other side of my deals were not comfortable with "by owner deals", regardless of who was the buyer or seller.

I took a real estate sales class and it was mentioned that men don't buy houses, women do. Most realtors are female.

Many people need hand holding, real estate agents do that.

 

[ultrarunner]

Especially true with first time buyers…

Also not knowing what is and isn’t possible because it is all new…

I took all the classes, past my State exam and Background Check but decided not to be licensed…

As a private individual I can talk to anyone I like and only buy and sell on my own account… plus it is beneficial for me to meet sellers… always.

Agents here have a high washout rate… many simply give up in the first 18 months if not sooner…

That said there are some very good people in the business and age is not a barrier unless too young…

One of Dads friends retired to Arizona after selling his brokerage office… he got bored and at 75 was a top producer in AZ and specialized in his community…

Never planned to work in retirement but saw too many clueless neighbors and decided to go back to work and says he really loves it…

 

[m7040]

This discussion has turned into selling real estate it seems

 

[lman]

This discussion has turned into selling real estate it seems

Sell your farm and you can retire to your tent.

 

[Doughknob]

Sell your farm and you can retire to your tent.

I lovve tents!

 

[m7040]

sounds like a good retirement plan

 

[ultrarunner]

Lesson Learned...

For many... Real Estate IS the retirement plan... cash out and downsize or buy into a retirement community...

It happens to farms all the time...

Not that anyone asked but I promised an update... that 899k home I posted had multiple offers and sold in several days, closing this week at a final selling price of 1,375,000 from $899 list.

The seller told me his retirement looks much brighter now...

The last 6 area sales all took the cash and left the State...

Personally... holding Real Estate has been my plan since day one as I have never been a Wall Street investor of significance...

 

[drssg]

Diversification and bacon!

That's the Dogbert (from the Dilbert comic strip) philosophy for retirement planning.

 

[ultrarunner]

Assuming most have Social Security and Medicare the planning comes in what else do you have and is it inflation protected?

More than I can count seniors that thought they had a solid plan are coming up short because of inflation and near zero interest CD rates.

Widow I help has her husband's life insurance of 250k with instructions not to touch principal and use the then 20k interest to augment social security...

That 20k is now 3k and we all know purchasing power continues to erode...

People use to joke about the $20 loaf of bread when I was a child... the reality is I might live to see it...

 

[RickB]

There are several high quality stocks with dividends paying 3-4% and up. Regulated utilities are one place for the risk averse to take a look at.

 

[m7040]

sounds like the discussion is back on retirement

 

[MoKelly]

There are several high quality stocks with dividends paying 3-4% and up. Regulated utilities are one place for the risk averse to take a look at.

IBM is 4.6% yield.

 

[Doughknob]

Lesson Learned...

For many... Real Estate IS the retirement plan... cash out and downsize or buy into a retirement community...

Personally... holding Real Estate has been my plan since day one as I have never been a Wall Street investor of significance...

LOL! That might work in CA.

 

[California]

LOL! That might work in CA.

A major part of the California economy always has been making money off the continual appreciation of property values, holding property to sell - especially to newcomers - for a lot more than you paid. That's worked well ever since the Gold Rush / Statehood in 1850. California never has had a majority of native born, ever since. There's always an eager buyer.

You don't have an invasion of new-money Californians who cashed out, coming there? Ask Idaho or Texas! Lots of resentment when new California money arrives and bids up everything. Owning property really is the retirement plan for many.

 

[ultrarunner]

Im thinking especially Idaho and Texas but also Arizona, Nevada, Washington and Oregon.

Isn't Boise up 40% +/- in 12 months?

Austin natives are also being priced out...

Money is fluid and when it comes to retirement most are free to move about...

My only realized losses were individual stocks owned...

Co-workers retiring couldn't when the market tanked... Value drops 50% and it's your fault for not investing better...

Very interested on strategies or lesson learned when it comes to retirement and inflation..

 

[Frankenkubota]

There are several high quality stocks with dividends paying 3-4% and up. Regulated utilities are one place for the risk averse to take a look at.

i know a few people that have done quite well with duke power. i wish i'd jumped in 40 years ago!